While owning a home comes with many unique benefits, imagine owning a house that pays for itself. Renting your property out to tenants is a way to make this dream a reality.
The average asking rent per month in the United States is just over $2,000. When broken down daily, this is approximately $66. As a vacation property owner, you can often charge significantly more than this.
To make the most of your rental property, you'll need to understand common red flags. Let's explore what's involved when screening guests for vacation rentals.
Don't: Ignore ID Verification
One of the biggest mistakes property owners make is ignoring ID verification. Verifying tenant identity establishes a certain level of accountability.
To clarify, let's assume one of your guests causes substantial property damage. If you had their ID information, you could provide it to local law enforcement. If you don't verify their ID, you might be solely responsible for handling the consequences.
Do: Screen Guests on Social Media
Renting out a vacation home is different than renting a conventional property. People often travel to a new city for brief periods of time to celebrate an occasion.
They also tend to travel in groups of friends. These factors combine to evoke potentially rowdy behavior.
You should check their social media presence if you can find them. Keep an eye out for photos that make it seem like they're only interested in partying.
While there's nothing inherently wrong with celebrating, people who like to get a little too crazy are a liability. More often than not, vacation rental property damage has alcohol use involved.
Don't: Accept One-Night Bookings
Single-night bookings often lead to trouble. Some tenants aim to book properties for a single night so they can throw an enormous party and leave with no consequences. It doesn't make much sense to book a vacation rental for only one day, as staying at a hotel would be more convenient.
Of course, there are exceptions to the rule. Families with children are generally safe bets. Groups of young adults are more likely to cause trouble.
Do: Hire a Property Management Company
Working with a property management company that uses a guest screening service can streamline vacation rental ownership. They also have the tools and resources to help you minimize vacancies. You can focus on other areas of your life without worrying about your rental property.
When looking for a property management company, prioritize those that have strong reputations. A quick online search will likely tell you everything you need to know.
You should also consider their payment structure. Doing so helps you avoid financial surprises. Some property managers charge flat rates, while others take a percentage of the rental income.
Don't Neglect Screening Guests for Vacation Rentals
The tips in this guide will help you recognize a suspicious reservation as soon as someone applies. Screening guests for vacation rentals also allows you to ensure your passive income stays consistent.
PMI Bluff City prides itself on helping our clients effectively manage their short-term rental properties. Not only do we screen tenants, but we also handle inquiries, coordinate bookings, and oversee property maintenance. You can learn more about the other benefits we provide by getting in touch with us.
